Tuesday, July 26, 2016

Trion Properties Acquires Rare Value-Add Multifamily Community in Redwood City, CA Submarket of Silicon Valley

Redwood City, CA Multifamily Property, Silicon Valley Region of Bay Area
Max Sharkansky
REDWOOD CITY, CA(July 26, 2016) – Trion Properties, a Los Angeles-based private equity firm with a niche focus on value-add multifamily investments, has acquired a 48-unit, value-add multifamily property in Redwood City, a densely populated, urban neighborhood in the Silicon Valley region of the Bay Area, in an off market transaction.

“The Bay Area is one of the strongest markets in the country,” says Max Sharkansky, Managing Partner at Trion Properties. “The region’s record-breaking job growth, coupled with its reputation as one of the nation’s largest technology hubs, is driving demand for centrally-located, high-quality housing near major employers.”

Sharkansky explains that Redwood City, in particular, is home to a growing cluster of tech companies, and is strategically located between the rapidly expanding job markets of San Francisco and San Jose, which presents an attractive opportunity to cater to the unprecedented renter demand throughout the region.

Buckingham Apartments, which the firms plans to rebrand, is located right off El Camino Real, one of the major thoroughfares of Silicon Valley, and in close proximity to Oracle, EA Sports, Google, Facebook, and other Fortune 100 tech companies.

Mitch Paskover
“There has been a vast migration of businesses to Redwood City as tech firms continue to be priced out of neighboring areas such as Palo Alto. Google, for example, recently acquired one million square-feet in the region.

“Further, Stanford University plans to open a 1.5 million square-foot satellite campus in Redwood City, expanding its presence in this growing market,” says Sharkansky.  

“The property’s proximity to these tech employers, schools, and transit options such as Caltrains will spur resident demand, generating strong cash flow and increased net operating income for this asset.”

Sharkansky notes that it is rare to source a multifamily property well-below replacement cost in a market like the Bay Area with favorable economic fundamentals and strong demographics. Redwood City boasts a median household income of $77,561 and continues to demonstrate steady rent growth.

“Rents at this property are currently 40 percent below market value, indicating tremendous upside potential,” adds Farhan Mahmood, Director of Acquisitions at Trion Properties. “By repositioning and renovating this asset, we plan to bring rents up to market value while delivering an institutional-quality product at a huge discount to newer construction.”

The principals of Trion Properties are Max Sharkansky and Mitch Paskover, two real estate professionals with over 30 years of combined experience in finance, acquisitions, management and redevelopment.

For a complete copy of the company’s news release, please contact:

Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940

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